Merchant Finance Limited (MFL) has teamed up with the Asian Development Bank (ADB) to roll out a new loan product specifically designed to support women-owned and led small and medium-sized enterprises (MSMEs) in Fiji, valued at $4 million (approximately $F10 million). The official launch took place at the Suva Business Center.
This initiative is aimed at improving access to financing for women entrepreneurs, a demographic identified as one of the most underserved in the local business landscape. Merchant Finance CEO Veilawa Rereiwasaliwa highlighted the significant challenges faced by female-led businesses, including insufficient loan amounts for scaling operations, high credit costs from financial institutions, and general difficulties in accessing funds.
The new MSME loan product is structured to be a transformative solution, featuring several enticing benefits: a competitive interest rate of 9.49% on a reducing balance, eligibility for the Reserve Bank of Fiji’s Government Guarantee scheme as part of loan security, and a loan ceiling of $500,000 with loan terms extending up to seven years. Notably, women-owned businesses also benefit from an improved loan to security value ratio of up to 200%, and the ability to use agricultural lease land or heavy machinery as collateral, broadening the scope for securing financing.
Aaron Batten, the ADB’s regional director for the Pacific Sub-Regional Office in Fiji, emphasized that the introduction of this product is a testament to Merchant Finance’s commitment to empowering women MSMEs and addressing existing barriers. He stated that the collaboration aims to unlock the potential of women entrepreneurs, enabling them to generate wealth for themselves and contribute to the growth of the Fijian economy.
This initiative not only seeks to support individual businesses but also reflects a broader commitment to fostering gender equality and economic empowerment within the Pacific region. The hope is that by providing targeted financial solutions, the collaboration will lead to lasting positive changes for women entrepreneurs in Fiji.
In summary, the launch of this new MSME loan product underscores the importance of tailored financial services in empowering women and promoting economic growth, presenting a hopeful outlook for the future of women-led enterprises in Fiji.
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